cash cycle

Definition

The length of time between the purchase of raw materials and the collection of accounts receivable generated in the sale of the final product. also called cash conversion cycle.

Use cash cycle in a sentence

The cash cycle had a lot of validity and I think that it was really good and we had a good handle on it.

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You should always be trying to figure out ways to speed up the cash cycle so that you can make more money.

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We use a major factoring service for commercial financing, as this helps our firm to manage its cash cycle more effectively.

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